We are all aware that our current administration, fueled by the previous one, has spent us into bankruptcy. To collect as much from the American taxpayer as possible, the Internal Revenue Service will step up its audits this year. One area it will target are those small business that hire "contract labor" when they are really employees. Why would a small business do this? They don't have a 941 liability, it's up the worker to pay their own taxes, they don't have to make a contribution to the employee's Social Security and they don't have to purchase workers comp insurance.
To prevent you from have those friendly people from the IRS help you with your taxes, the following information is provide:
There are 20 factors identified by the IRS as indicating whether an individual is an employee or independent contractor, and referred to in Rev. Rul. 87-41, 1987-1 C.B. 296. They are as follows: